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    Mainstreaming MDGs ThroughNational Development Strategies

    Prepared For

    THE ECONOMIC AND SOCIAL COMMISSIONFOR ASIA AND THE PACIFIC

    ______________________________________________________________________

    Dr. Tarun Das1

    May 2007

    Millennium Development Goals

    1The report was prepared when the author worked as Professor (Public Policy), Institute forIntegrated Learning in Management, New Delhi, India. Presently, the author is on sabbaticalleave and working as Glocoms Inc. (USA) Strategic Planning Expert for the Government ofMongolia under a Capacity Building Project on Governance Reforms being funded by the

    Asian Development Bank. Earlier the author worked as Economic Adviser in the Ministry ofFinance and the Planning Commission, Government of India .

    The paper expresses personal views of the author and should not be attributed to the views of

    the organizations he is associated with. The author would like to express his gratitude to theUN-ESCAP, Bangkok, particularly to Dr. Ravi Ratnayake, Director and Dr. Hiren Sarkar,

    Chief, Poverty and Development Division, for providing an opportunity to prepare thisreport, and also making valuable and extensive comments on an earlier draft.

    **For any clarification and additional information, EMAIL [email protected]/[email protected]

    1

    mailto:[email protected]/mailto:[email protected]:[email protected]/mailto:[email protected]
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    "The Millennium Development Goals were adopted five years ago by all the

    world's Governments as a blueprint for building a better world in the 21st

    century."Kofi Annan

    TABLE OF CONTENTS

    ContentsAcronyms

    1. Introduction, Scope and Objectives

    1.1 Introduction and objectives1.2 Scope of the report1.3 Methodology1.4 Misunderstanding and misconception of MDG targets1.5 Growth and Pro-Poor Policies

    2. Millennium Development Goals (MDG) and Poverty Reduction Strategy

    Papers (PRSP)

    2.1 Millennium Development Goals (MDGs)2.2 Poverty Reduction Strategy Papers (PRSP)

    2.3 Poverty Reduction and Growth Facility (PRGF)2.4 Interlinkages between MDG Reports and PRSP2.5 MDG Reports and PRSP Consulted in this Report

    3. Economic and Social Profiles of sample countries

    3.1 Economic and social indicators of sample countries3.2 General development strategies of Asian economies3.3 Development challenges of Asian Sub regions

    3.3.1 Development challenges of South Asia and SAARC3.3.2 Development challenges of East Asia and South East Asia

    3.4 Progress of Achievement of MDG targets in Asian economies3.4.1 Assessment by the Joint WB-IMF Monitoring Report on MDG (2006)3.4.2 Assessment by the UN Millennium Development Goals Report (2006)3.4.3 Performance of MDG targets in SAARC countries

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    4. Common policies and program under MDG Reports and PRSP

    4.1 Stylized policies and programs under MDG reports and PRSP4.2 Rationale for a package of policies and programs for poverty reduction

    4.3 Poverty traps at individual, local, national and global levels4.4 Poverty and the environment4.5 Macro Adjustment Policies

    4.5.1 Reorientation of public policies4.5.2 Role of macro stabilisation policies for poverty reduction4.5.3 Fiscal incentives4.5.4 Role of Foreign Direct Investment (FDI)4.5.5 Innovative financing techniques for the poor

    4.6 Sectoral policies4.6.1 Rationale for development of agriculture and agro-based SMEs for

    poverty alleviation

    4.7 Targeted pro-poor policies4.8 Development of efficient infrastructure and human capital formation4.8.1 Infrastructure development4.8.2 Human resource development4.8.3 Legal, institutional and regulatory system4.8.4 Competent and committed bureaucracy

    4.9 Regional economic cooperation4.9.1 Technical assistance4.9.2 External Aid

    4.10 MDG and PRSP coordination

    5 Concluding observations

    5.1 Asian Economy- Performance and Challenges5.2 Main Observations on MDG Reports and PRSP

    5.2.1 Basic thrust of MDG reports5.2.2 MDGs and budgets5.2.3 MDGs and PRSP

    5.3 MDGs and regional co-operation5.3.1 Reinforcing a country-driven approach5.3.2 Enhancing analytical underpinnings5.3.3 Strengthening institutional capacity for successful implementation5.3.4 Monitoring outputs and outcomes and improving database5.3.5 Enhancing aid effectiveness5.3.6 Bridging development research and policy planning

    5.4 Stylized policy package for pro-poor growth

    Selected References

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    Annexes

    Annex-1.1: Policies and strategies for reduction of poverty and hunger under MDGreports and PRSPs in 14 sample countries1

    Annex-1.2: Policies and strategies for development of universal education and genderequality under MDG reports and PRSPs in 14 sample countries

    Annex-1.3: Policies and strategies for improvement of health conditions andenvironmental sustainability under MDG reports and PRSPs in 14 sample countries

    Annex-1.4: Policies and strategies to encourage globalization and developmentpartnership under MDG reports and PRSPs in 14 sample countries

    Annex-2.1 Bangladesh MDG Targets, Performances, Challenges and Strategy

    Annex-2.2 Cambodia MDG Targets, Performances, Challenges and Strategy

    Annex-2.3 Maldives MDG Targets, Performances, Challenges and Strategy

    Annex-2.4 Mongolia MDG Targets, Performances, Challenges and Strategy

    Annex-2.5 Pakistan MDG Targets, Performances, Challenges and Strategy

    1Afghanistan, Bangladesh, Cambodia, China, Lao PDR, Maldives, Mongolia, Myanmar,Nepal, Pakistan, Papua New Guinea, Samoa, Thailand and Timor Leste

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    ACRONYMS

    ADB Asian Development BankAFTA ASEAN Free Trade AreaAIDS Acquired Immune Deficiency SyndromeAPCTT Asia and Pacific Centre for Transfer for Technology

    APEC Asia Pacific Economic CooperationASEAN Association of Southeast Asian NationsATC Agreement on Textiles and ClothingCBOs Community Based OrganizationsDFID Department for International developmentDOTS Directly Observed Treatment Short CourseEFA Education for AllESCAP Economic and Social Commission for Asia and the PacificFAO Food and Agricultural OrganizationFDI Foreign Direct InvestmentGATT The General Agreement on Tariffs and TradeGDP Gross Domestic ProductGF Global FundGIS Geographic Information SystemGNP Gross National ProductGSP Generalized System of PreferencesHDI Human Development IndexHIPC Heavily Indebted Poor CountriesHIV Human Immune Deficiency VirusICT Information and Communications TechnologyIPRSP Interim Poverty Reduction Strategy PapersIT Information TechnologyILO International Labour OfficeIMF International Monetary FundLDCs Least Developed CountriesMDG Millennium Development GoalMOF Ministry of Finance

    MTEF Medium Term Expenditure FrameworkMTEP Medium Term Expenditure Plan NDP National Development Plan NGOs Non-Governmental OrganisationsODA Overseas Development AidOECD Organisation for Economic Cooperation and DevelopmentPPA Participatory Poverty AssessmentsPPP Purchasing Power ParityPRGF Poverty Reduction Guarantee FundPRSP Poverty Reduction Strategy PaperQRs Quantitative restrictionsR&D Research and DevelopmentSAARC South Asian Association for Regional Cooperation: comprises Afghanistan, Bangladesh, Bhutan,

    India, Maldives, Nepal, Pakistan and Sri Lanka.SAFTA South Asian Free Trade OrganisationSIDA Swedish International Development AgencySMEs Small and Medium-Sized enterprisesSOEs State Owned EnterprisesSTD Sexually Transmitted DiseaseSTI Sexually Transmitted InfectionsUN United NationsUNAIDS United Nations Program on AIDS/ HIV

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    Mainstreaming MDGs Through National Development Strategies

    Dr. Tarun Das1

    This chapter discusses the basic objectives, scope and methodology for this study. It

    also clarifies certain misconceptions and misunderstandings of the MDG targets for

    individual countries.

    The chapter provides the evidence that higher growth is a necessary condition but

    not sufficient for poverty reduction. Growth needs to be accompanied by pro-poor

    policies and strategies as the trickle down effects of growth may be slow, delayed

    and uneven.

    The chapter concludes that although there is no consensus about the concept,

    definition and measurement of pro-poor growth, much more pro-poor growth,whatever be the definition, is needed in most countries to achieve the MDG targets.

    1. Introduction, Scope and Objectives

    1.1 Introduction and Objectives

    This report is a part of a wider study being executed by the UN-ESCAP on theinterrelationships among MDG Reports/ strategies, National Development Plans (NDPs)

    and Poverty Reduction Strategy Papers (PRSPs). The basic objective of the study is tounderstand, examine and establish the respective roles, linkages and consistencies ofMDG Reports, NDPs and PRSPs for achieving MDG targets. It is also desired to examinethe logical structure for analyzing these documents so as to synthesize common priorityareas on which governments are contemplating actions and need external assistance forenhancing achievement of MDGs.

    In September 2000, the Millennium Summit synthesized previously agreed global goalsand targets in a document called the Millennium Declaration adopted by 189 nations.Formulated as 8 goals (viz. eradicate extreme poverty and hunger, achieve universalprimary education, promote gender equality, reduce child mortality, improve maternal

    1The Report was completed when the author worked as Professor (Public Policy) in the Institute forIntegrated Learning in Management (IILM), New Delhi, India. Presently, the author is on sabbaticalleave and working as Glocoms Inc. (USA) Strategic Planning Expert for the Government of Mongolia

    under a Capacity Building Project on Governance Reforms being funded by the Asian Development

    Bank. Earlier the author worked as Economic Adviser in the Ministry of Finance and Planning

    Commission, Government of India.

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    health, combat HIV/AIDS and other diseases, ensure environmental sustainability, anddevelop global partnership for development) and 18 targets, the MDGs were endorsedby the UN General Assembly in late 2001. The millennium development goalsrecentlymarked their fifth anniversary and generated tremendous support, nationally, regionallyand globally.

    The present report is based on interrelationships between MDG Reports,National Development Plans and Poverty Reduction Strategy Papers (PRSPs) of

    12 selected off-track countries (viz. Afghanistan, Bangladesh, Cambodia, Lao

    PDR, Maldives, Mongolia, Myanmar, Nepal, Pakistan, Papua New Guinea,Samoa and Timor Leste) and two on-track countries (viz. China and Thailand).

    This report makes a critical analysis of the most recent MDG Reports of 12 selected off-track countries (viz. Afghanistan, Bangladesh, Cambodia, Lao PDR, Maldives, Mongolia,Myanmar, Nepal, Pakistan, Papua New Guinea, Samoa and Timor Leste) and two on-track countries (viz. China and Thailand) for each goal under MDG. It also lists the broad

    policies being adopted by these countries to achieve MDG targets and examines inter-relationships between MDG Reports and PRSPs.

    Among the countries included in this report, Timor Leste is the newest member of theUN, which became an independent sovereign state on 20 May 2002 and incorporated theMDGs in the objectives of its first five-year National Development Plan. (2002/03 to2006/07).

    1.2 Scope of the report

    This report consists of five chapters. Following this brief introduction, chapter-2

    discusses the basic contents of MDG reports and PRSP for achieving MDGs, and theinterlinkages between MDG reports and the PRSP reports on the basis of experiences of14 selected countries.

    Chapter-3 presents brief socio-economic profiles of the selected countries and their broaddevelopment strategies. Since five countries among 14 selected economies (viz.Afghanistan, Bangladesh, Maldives, Nepal and Pakistan) are members of South Asia andbelong to the regional group SAARC, a separate section in chapter-3 is devoted to theperformance of MDG targets and constraints to achieve these targets in the SAARC.

    Chapter 4 analyzes goal-wise policies and strategies indicated in MDG reports andPoverty Reduction Strategy Papers of selected Asia Pacific countries in details. Itidentifies general problems/ challenges in achieving MDGs and common policies andprograms adopted by different countries.

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    Chapter 5 synthesizes the main findings of the report and identifies common thrusts ofpolicies, which will be necessary to reduce poverty and hunger, and at the same time toimprove education, health and environmental sustainability of developing countries. Thechapter also provides future direction of research and actions on the part of internationaland regional development organisations like UN-ESCAP.

    1.3 Methodology

    This report is mainly based on a desk study with the help of reference articles and reportsdownloaded from the Internet. Basic methodology consisted of intensive studies andanalysis of MDG reports, Poverty Reduction Strategy Papers (PRSP) and the Fund-BankJoint Staff Advisory Notes (JSANs) on PRSP of the selected countries, and preparingformatted tables on goal-wise targets and achievements, policies and programs, systemsfor monitoring and evaluation in selected countries. The MDG reports, PRSP and JSANsconsulted to prepare this report are listed in Table-2.4 in Chapter-2.

    As the study is concerned with the interlinkages between MDG reports and PRSP in thepast and future issues, the time frame of the study is confined mainly to 2000s. Theanalysis in the report is supported by four Annexes (Annex 1.1 to Annex 1.4) dealing withpolicies and programs initiated by 14 selected countries to achieve eight MDGs groupedunder four heads viz. (a) to reduce poverty and hunger, (b) to improve literacy and genderequality, (c) to improve health conditions and environmental protection and (d) to foster9liberalization and international partnership. The report ends with a list ofselectedbibliography on the subject.

    For analytical purpose, in this report, the eight UN-MDGs have been grouped

    under four broad heads viz. (a) reduction of poverty and hunger, (b) improving

    literacy and gender equality, (c) improving health conditions and environmentalprotection and (d) fostering globalization and international partnership.

    1.4 Misunderstandings and Misconceptions of MDG targets

    One of the basic objectives of the present report is to identify common policies, needsand constraints of the selected countries to pursue the goals under MDG Reports. Asmentioned earlier, these issues will be discussed in details in chapter-3. However, beforediscussing these interrelationships, it is necessary to clarify certain misunderstandingsand misconceptions of the MDG targets for the individual countries.

    In this respect, it is worth noting the following comments on MDG targets given recentlyby Jan Vandemoortele, currently UN Resident Coordinator in Pakistan and who was theCo-chair of the UN inter-agency group that put the MDGs together in 2001. In a onepager policy brief entitled MDGs: Misunderstood Targets? (Number 28, January 2007)published by the UNDP International Poverty Centre, Jan Vandemoortele has concluded:

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    (1) The MDG targets were selected on the basis of available indicators and reliabledata for documenting progress. The MDGs aim to reduce hunger by one-half,infant and child mortality by two-thirds, and maternal mortality by three-quarters.The obvious question is: Why are these targets different? Why do they not call,for example, for a reduction by three-quarters across the board? The simple

    answer is that most of the global targets are based on historical trends. They wereset on the premise that progress observed at the global level over the previous 25years would continue for the next 25 years (1990-2015). Thus, the MDGs areessentially an extrapolation of global trends of the 1970s and 1980s and projectedforward till 2015.

    (2) Global versus local targets It is erroneous to interpret the MDGs as a uniformyardstick for human development, because the quantitative targets were set in linewith global trends, not on the basis of historical trends for any a specific country.Thus, assessing whether progress is on track for meeting the targets by 2015 canonly be done at the global level. The spirit of the Millennium Declaration was not

    to impose a one-size-fits-all benchmark for all countries regardless of their variedsocio-economic-political-historical background, natural endowments andparticular challenges.

    The spirit of the UN Millennium Declaration was not to imposea one-size-fits-all benchmark for all countries regardless of their

    varied socio-economic-political-historical background, naturalendowments and particular challenges ( Jan Vandemoortele,

    January 2007).

    (3) It should not be surprising that many countries will miss several of the global

    MDG targets because these targets were not set specifically for individualcountries. It would be a tragic misunderstanding of the MDGs if all thesecountries were to be classified as failures for the irrelevant reason that they willnot meet artificial benchmarks set on the basis of past global trends.

    (4) Making sense at the country level Before dismissing the MDGs as targets thatare easily set but never met, there are four practical steps that can be taken tomake sense of the MDGs at the country level:

    (a) Global targets must be tailored to make them context-sensitive essential forgenerating a sense of national ownership.(b) Intermediate targets are essential for sustaining political commitment andensuring accountability. The MDGs must be linked to the political agenda oftodays government.(c) Actionable reforms must be formulated to make adequate progress towardsagreed longer-term benchmarks.(d) Costing these actions and reforms must be reflected in the national budget andaid allocations. However, it would be ill advised to estimate the costs of the MDG

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    targets over an extended period of time. MDG costing will only yield results thathave a reasonable degree of accuracy when done within a 2-3 year timeframe.

    Successful implementation of MDGs require that these must betailored to make them context-sensitive, owned by the countries,

    linked to the political agenda of the government; actionable reformsmust be formulated for achieving longer-term benchmarks; andcosting these actions and reforms must be reflected in the national

    budget and aid allocations (Jan Vandemoortele, January 2007).

    In another one pager policy brief entitled MDGs: Misunderstood or Misconceived?(Number 33, April 2007)published by the UNDP International Poverty Centre, HamidTabatabai argues that if Vandemoortele were right, the MDGs are not so muchmisunderstood as misconceived. Vandemoortele, being the co-chair of the UN Inter-agency group, represents the official view. However, his observations are at variancewith numerous documents that suggest otherwise, at both regional and national levels.

    For example, the UN Millennium Projects main report observed that the countries ofEast Asia have, as a group, moved closer toward achieving the Goals, but progress hasbeen uneven within the region, within countries, and across the Goals. Some countrieshave already come closer to achieving most of the Goals and have even committedthemselves to more ambitious, MDG-plus targets, but others remain significantly offtrack for meeting the original Goals (UN Millennium Project. 2005, p. 161).

    Secondly, the fact that quantitative targets are based onglobaltrends is not itself a reasonfor not applying them at other levels, such as regional or national. Thirdly, past trends areaverages of diverse experiences. Therefore, it is possible that some countries obviouslylie below the average.

    The purpose of these rather long quotes from the internationally acknowledgedauthorities on MDG is to convey the message that like MDG targets there does not exit aset of unique policies which hold good universally for all countries and at all times forreduction of poverty and hunger. This observation has been explained in details inchapter-4.

    As the MDG targets differ across the Goals, regions, and withincountries, there does not exit a set of unique policies, which hold

    good universally for all countries and at all times for reduction of

    poverty and hunger.

    1.5 Growth and Pro-poor Policies

    The reduction of income poverty depends on sustained high economic growth. There is ageneral consensus among the poverty experts, policy makers and multilateral funding anddevelopment agencies that a rise in per capita income is a major element in sustainablepoverty reduction. However, similar rates of growth can have very different impact on

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    poverty depending on the initial levels of income inequalities and different socio-economic-political environment over time and space (UNDP IPC 2007).

    A recent working paper from the UNDP International Poverty Centre, Brazil (H. H. Sonand N. Kakwani 2006) presents regional and global estimates of growth and their pro-

    poorness on the basis of cross-country data for 237 growth spells in 80 low-and middle-income developing countries during 1984-2001. The study indicated that there are largevariations not only in growth rates but also in the impact on poverty.

    The study defined growth as pro-poor if poor households increase income proportionatelymore than the non-poor (i.e. households above the poverty line). When growth is negativei.e. in a recession, it is termed as pro-poor if the income decrease for the poor isproportionately less than that for non-poor households. The study indicated that of all the237 growth spells under observation, 44.7 percent witnessed negative growth rates. In theremaining 55.3 percent growth spells with positive growth rates, growth was pro-pooronly in 23.2 percent cases. Out of all the growth spells (including negative growth rates),

    majority of the cases (accounting for 55.5 percent of total) were anti-poor (Table 1.1).The study suggests that global growth processes have generally not been pro-poor(defined as a situation with an increasing income share of the poor in income distributionover time).

    Various studies suggest that global growth processes have generally not

    been pro-poor (defined as a situation with an increasing income share ofthe poor in income distribution over time).

    Above observations also hold good for Asian economies. Table 1.1 shows that in EastAsia and the Pacific, growth rates were positive in 74.3 percent of the spells, but only

    17.1 percent of the spells witnessed both positive and pro poor growth. About two-thirds(65.8 percent) of all growth spells in East Asia and Pacific were anti-poor, although thisregion achieved significant reduction of poverty during 1984-2001 (except for 1997-1999in some countries affected adversely by the foreign exchange crisis leading to widerfinancial, economic and social crisis). This suggests that poverty reduction in this regionwas due mainly to high rates of growth rather than to growth rates being pro-poor.Similar observations also hold good for South Asia.

    Poverty reduction in East Asia and Pacific was due mainly to high rates of

    growth rather than to growth rates being pro-poor. Similar observations

    also hold good for South Asia.

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    Table 1.1 Country grouping by pro-poor and anti-poor growth rates

    Country Groupings Positive growth Negative growth

    Pro-

    poor

    Anti-

    poor

    Total Pro-

    poor

    Anti-

    poor

    Total

    Low income countries 20.8 33.3 54.2 27.8 18.1 45.8

    Low middle income 26.7 31.4 58.1 19.0 22.9 41.9

    Upper middle income 21.7 35.0 56.7 21.7 21.7 43.3

    Heavily indebted poorcountries (HIPC)

    18.6 27.1 45.8 32.2 22.0 54.2

    East Asia and Pacific 17.1 57.1 74.3 17.1 8.6 25.7

    South Asia 29.4 52.9 82.4 11.8 5.9 17.6

    East Europe and CentralAsia

    12.3 21.1 33.3 21.1 45.6 66.7

    Latin America andCaribbean

    30.4 29.1 59.5 24.1 16.5 40.5

    Middle East and NorthAfrica

    35.7 14.3 50.0 28.6 21.4 50.0

    Sub-Saharan Africa 20.0 43.3 54.3 31.4 14.3 45.7

    All countries 23.2 32.1 55.3 22.4 22.4 44.7

    Source: H. H. Son (2007)

    A cross-country study indicates that lower inflation and price stability areassociated with pro-poor growth. Contrary to conventional wisdom, high

    levels of trade openness were found to be significantly associated with

    negative growth, while there was no significant relationship between tradeopenness and pro-poor growth (Son 2007).

    Although cross-country regression analysis is subject to serious statistical estimation

    problems, this study also investigated the relationship between different policies andgrowth rates. It was observed that lower inflation and price stability are associated withpro-poor growth. Contrary to conventional wisdom, the study found that low levels oftrade openness were significantly associated with positive growth and high level of tradeopenness with negative growth, and there was no significant relationship between tradeopenness and pro-poor growth.

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    There is a general consensus among development economists and

    policy makers that higher growth is a necessary condition but not

    sufficient for poverty reduction. It needs to be accompanied by pro-

    poor policies and strategies. But there is no consensus about how todefine and measure pro-poor growth. Much more pro-poor growth,

    whatever is the definition, is needed in most countries if theMillennium Development Goals (MDGs) are to be achieved.

    There seems to be a broad consensus among analysts and policy makers that highergrowth is a necessary condition but not sufficient for poverty reduction. It needs to beaccompanied by pro-poor policies and strategies. But there is no consensus about how todefine and measure pro-poor growth. The International Poverty centre (IPC) at Brazilinitiated a debate on this issue among researchers in 2004-05 in a series of One-Pagers,summarized in Number-6: Pro-poor growth; finding the Holy Grail. The March 2007Issue of the IPCs Journal Poverty in Focus carries this debate further and concludes

    that much more pro-poor growth, whatever be the definition, is needed in most countriesif the first Millennium Development Goal is to be achieved.

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    Chapter-2

    Millennium Development Goals (MDG)

    And Poverty Reduction Strategy Papers (PRSP)

    This chapter describes briefly the basic concepts, scope and objectives of theMillennium Development Goals (MDGs), Poverty Reduction Strategy Papers

    (PRSPs) and the IMF Poverty Reduction and Growth Facility (PRGF).

    It specifies eight Millennium Development Goals, 18 quantifiable targets and 48

    indicators to monitor these targets.

    It also discusses interrelationshipsbetween MDG Reports and PRSPs and the

    sources of data and information for our discussion.

    It is observed that there is close interactions between MDG reports and PovertyReduction Strategy Papers for any country as both are prepared in consultation

    and association with all stakeholders who happen to be almost the same groups

    in MDG and PRSPs

    2.1 Millennium Development Goals (MDG)

    In September 2000, at the United Nations Millennium Summit in New York, 189 nationsendorsed the Millennium Declaration, setting out a global agenda for the start of the 21 st

    Century to promote human development and reduce global poverty, hunger andinequalities, and to protect environment. The Millennium Development Goals (MDGs),

    drawn directly from the Millennium Declaration, set eight ambitious goals be achievedby 2015. The eight MDGs are (1) Eradicate extreme poverty and hunger; (2) Achieveuniversal primary education; (3) Promote gender equality and empower women; (4)Reduce child mortality; (5) Improve maternal health; (6) Combat HIV/AIDS, malaria andother diseases; (7) Ensure environmental sustainability; and (8) Develop a global partnership for development. Eight MDGs contain 18 quantifiable targets that aremonitored through 48 indicators (Table-2.1). Global targets are set to help mobilizepolitical commitment and to provide benchmarks in measuring progress in promotinghuman development and poverty reduction.

    The Millennium Development Goals (MDGs) comprise eight ambitious

    goals to be achieved by 2015. The eight MDGs are (1) Eradicateextreme poverty and hunger; (2) Achieve universal primary education;

    (3) Promote gender equality and empower women; (4) Reduce child

    mortality; (5) Improve maternal health; (6) Combat HIV/AIDS, malariaand other diseases; (7) Ensure environmental sustainability; and (8)

    Develop a global partnership for development. Eight MDGs contain 18

    quantifiable targets that are monitored through 48 indicators.

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    Table-2.1: Millennium Development Goals (MDGs)

    Goals, Targets and Indicators

    Goals and Targets Indicators

    Goal 1: Eradicate extreme poverty and

    hunger

    Target 1:Halve, between 1990 and 2015, the proportionof people whose income is less than one dollara day

    Target 2:Halve, between 1990 and 2015, the proportion ofpeople who suffer from hunger

    1.Proportion of population below $1 per day2.Poverty gap ratio [incidence x depth ofpoverty]

    3.Share of poorest quintile in nationalconsumption

    4.Prevalence of under-weight children (under-five years of age)

    5.Proportion of population below minimumlevel of dietary energy consumption

    Goal 2: Achieve universal primary education

    Target 3:Ensure that, by 2015, children everywhere,boys and girls alike, will be able to complete afull course of primary schooling

    6.Net enrollment ratio in primary education7. Proportion of pupils starting grade 1 who

    reach grade 58.Literacy rate of 15-24 years olds

    Goal 3: Promote gender equality and

    empower women

    Target 4:Eliminate gender disparity in primary andsecondary education preferably by 2005, and toall levels of education no later than 2015.

    9.Ratio of girls to boys in primary, secondaryand tertiary education

    10. Ratio of literate females to males of 15-24year olds

    11.Ratio of women to men in wageemployment in the non-agricultural sector

    12. Proportion of seats held by women innational parliament

    Goal 4: Reduce child mortality

    Target 5:Reduce by two-thirds, between 1990 and 2015,the under-five mortality rate

    13.Under-five mortality rate14. Infant mortality rate15. Proportion of 1 year old children

    immunized against measles

    Goal 5: Improve maternal health

    Target 6:Reduce by three-quarters, between 1990 and 2015,the maternal mortality ratio

    16.Maternal mortality ratio17.Proportion of births attended by skilled

    health personnel

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    Goal 6: Combat HIV/AIDS, malaria and

    other diseases

    Target 7:Have halted by 2015 and begun to reverse thespread of HIV/AIDS 19. Contraceptive

    prevalence rate 20. Number of childrenorphaned by HIV/AIDS

    Target 8:Have halted by 2015 and begun to reverse theincidence of malaria and other major

    18.HIV prevalence among 15-24 year oldpregnant women

    19. Contraceptive prevalence rate20. Number of children orphaned by

    HIV/AIDS

    21. Prevalence and death rates associated withmalaria22. Proportion of population in malaria riskareas using effective malaria prevention andtreatment measures23. Incidence of Tuberculosis (per 100,000people)24. Proportion of TB cases detected and curedunder DOTS (Directly Observed Treatment

    Short Course)

    Goal 7: Ensure environmental sustainability

    Target 9:Integrate the principles of sustainabledevelopment into country policies and programs and reverse the loss of environ-mental resources

    Target 10:

    Halve, by 2015, the proportion of peoplewithout sustainable access to safe drinkingwater

    Target 11:By 2020, to have achieved a significantimprovement in the lives of at least 100 millionslum dwellers

    Goal 8: Develop a Global Partnership for

    Development

    Target 12:

    Develop further an open, rule based, predictable, nondiscriminatory trading andfinancial systemTarget 13.Address the Special Needs of the LeastDeveloped CountriesTarget 14.Address the Special Needs of land lockedcountries and small island developing states

    25. Proportion of land area covered by forest26. Land area protected to maintain biologicaldiversity27. GDP per unit of energy use (as proxy forenergy efficiency)28. Carbon dioxide emissions (per capita)

    29. Proportion of population with sustainableaccess to an improved water source30. Proportion of people with access toimproved sanitation31. Proportion of people with access to securetenure [Urban/rural]

    Official Development Assistance:

    32. Net ODA as percentage of OECD/DACdonors GNP [targets of 0.7 per cent in totaland 0.15 per cent for LDCs] financial system

    33. Proportion of ODA to basic social services(basic education, primary health care, nutrition,safe water and sanitation)34. Proportion of ODA that is untied35. Proportion of ODA for environment insmall island developing states36. Proportion of ODA for transport sector inland-locked countries

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    Target 15:Deal comprehensively with the debt problemsof developing countries through national andinternational measures in order to make debtsustainable in the long term

    Target 16:In co-operation with developing countries,develop and implement strategies for decentand productive work for youth

    Target 17:In co-operation with pharmaceuticalcompanies, provide access to affordable,

    Target 18:

    In co-cooperation with the private sector, makeavailable the benefits of new technologies,especially information and communications

    Market Access

    37. Proportion of exports (by value andexcluding arms) admitted free of duties andquotas.38. Average tariffs and quotas on agriculturalproducts and textiles and clothing.

    39. Domestic and export agricultural subsidiesin OECD countries40. Proportion of ODA provided to help buildtrade capacity

    Debt Sustainability

    41. Proportion of official bilateral HIPC debtcancelled42. Debt service as a percentage of exports ofgoods and services43. Proportion of ODA provided as debt relief44. Number of countries reaching HIPC

    decision and completion points

    45. Unemployment rate of 15-24 year olds

    46. Proportion of population with access toaffordable essential drugs on a sustainable basisessential drugs in developing countries

    47. Telephone lines per 1000 people48. Personal computers per 1000 people

    2.2 Poverty Reduction Strategy Papers (PRSP)

    Translating the global MDG targets into action requires an operational framework at thenational level for setting out a country-owned cross-cutting agenda aimed at sustained,shared growth and public action directed towards achieving the MDGs. For this purpose,more than 70 poorest countries are preparing the Poverty Reduction Strategy Papers

    (PRSP) under the leadership of government, and with active consultation andcollaboration with the World Bank, IMF, other donors including the UN CountryCoordinator and civil society participation. PRSP describes a countrys macroeconomic,structural and social policies to promote growth and reduce poverty. There are six coreprinciples underlying the development and implementation of the poverty reductionstrategies, as the following:

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    Country-driven, involving broad-based participation by civil society and the private

    sector in all operation

    Result-oriented, and focused on not only immediate results (outputs) but also medium

    and long term outcomes hat will benefit the poor,

    Comprehensive in recognizing the multidimensional nature of poverty

    Prioritized so that implementation is feasible in both fiscal and institutional terms,Partnership oriented, involving coordinated participation of developmental partners

    (bilateral, multilateral funding organizations, governments)

    Based on long-term perspective of poverty reduction.

    PRSP describes a countrys macroeconomic, structural and social policies

    to promote growth and reduce poverty. There are six core principles

    underlying the PRSP viz.

    Country-driven, involving broad-based participation by civil society

    Result-oriented, and focused on outputs and outcomes that will benefit the

    poor,Comprehensive in recognizing the multidimensional nature of poverty,

    Prioritized so that implementation is feasible in both fiscal and

    institutional terms,

    Partnership oriented, involving participation of developmental partners

    Based on long-term perspective of poverty reduction.

    As the national ownership is the key, countries are required to set their own quantitativeand qualitative targets and formulate specific policies and program to attain the MDGtargets. The MDG Country Reports and the annual PRSP progress reports inform the

    wider public and policy makers of progress towards poverty reduction. Efforts are madeto ensure that MDG reports and PRSP donot lead to duplication of works rather supportgood statistics and strengthen national capacities for poverty monitoring and analysis.

    Poverty Reduction Strategy Papers (PRSP) are prepared by the member countries througha participatory and wide consultancy process involving domestic stakeholders andexternal development partners such as the World Bank, International Monetary Fund,Asian Development Bank, UNDP, IFAD. Updated every three years with annual progressreports, PRSPs describe the countrys macro 20liberalization policies, structural reforms,sectoral and social policies and programs over a three-year or longer time horizon topromote broad-based growth and reduce poverty. The reports also provide an estimate of

    the associated external financing needs and major sources of financing. Interim PRSPs (I-PRSPs) summarize the current knowledge and analysis of a countrys poverty situation,describe the existing poverty reduction strategy, and lay out the process for producing afully developed PRSP in a participatory fashion. The country documents, along with theaccompanying IMF/ World Bank Joint Staff Assessments (JSAs), are made available onthe World Bank and IMF websites by agreement with the member country as a service tousers of the World Bank and IMF websites.

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    2.3 Poverty Reduction and Growth Facility (PRGF)

    In September 1999, the IMF established the Poverty Reduction and Growth Facility(PRGF) to make the objectives of poverty reduction and growth more central to its

    lending operations in poorest member countries. Under this facility, IMF provides low-interest lending facility to the low-income countries. PRGF supported programs areunderpinned by comprehensive country-owned poverty reduction strategies. Experiencewith the PRGF highlights a number of distinctive features:

    The principle of broad public participation and greater country ownership is central to

    the PRGF. Policies and programs based on PRGF are more open as they are based onthe nationally owned PRSF.

    PRGF supported programs reflect more closely each countrys poverty reduction and

    growth priorities.

    PRGF supported programs focus on strengthening governance for effective

    implementation and financing of targeted and well-prioritized programs and to improvepublic resource management, transparency and accountability. These also give moreattention to the poverty and social impacts of key macroeconomic policy measures.

    Under the Poverty Reduction and Growth Facility (PRGF) established inSeptember 1999, IMF provides low-interest loans to the low-income

    countries. PRGF supported programs are underpinned by comprehensive

    country-owned poverty reduction strategies, and focus on strengtheninggovernance for implementation and financing of targeted programs; and

    improving public resource management, transparency and accountability.

    They also give more attention to the poverty and social impacts of key

    macroeconomic policies.PRGF supported programs are designed in areas within the primary responsibility of IMF.These areas include prudent macroeconomic policies, related structural reforms, such asexchange rate and tax policy, fiscal management, budget execution, fiscal transparency,and tax and customs administration. When appropriate IMF draws upon the expertise ofthe World Bank, which provides advice in designing poverty reduction strategy, povertyassessment, monitoring, structural, sectoral and social issues, and costing prioritypoverty-reducing expenditure.

    2.4 Interlinkages between MDG Reports and PRSP

    There is close interactions between MDG reports and Poverty Reduction Strategy Papersfor any country as both are prepared in consultation and association with all stakeholderswho happen to be almost the same groups viz. the Ministries of Planning and Finance,concerned line ministries, NGOs, donors and international organizations.

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    There is close interactions between MDG reports and Poverty Reduction

    Strategy Papers for any country as both are prepared in consultation andassociation with all stakeholders who happen to be almost the same groups

    in preparation of MDG Reports and PRSP.

    Bangladesh MDG Report

    As for example, the first Bangladesh MDG progress report (February 2005) was prepared jointly by the government of Bangladesh and the UN Country Team (UNCT) onBangladesh in consultation with all stakeholders. This was the first attempt at a consensusstock-taking of the status of all the MDGs in Bangladesh.

    In the preparation of the report, in order to be effective as an advocacy tool, it was

    essential to arrive at a consensus on the data used to monitor the progress of the MDGs.This was ensured through the Technical Working Groups (TWGs) whose terms ofreference included identificationof MDG targets and indicators relevant for Bangladesh.In addition, the TWGs established the benchmark year from which the MDGs would bemonitored. While a sophisticated econometric model was applied to simulate the rates ofgrowth required for relevant indicators to achieve the MDGs, attempts have been made tokeep the report brief and simple, highlighting the gaps and challenges that need to beaddressed to meet the MDGs.

    Using this information, the simulation model was applied to provide an indication ofwhether Bangladesh was on track to achieve the MDGs by 2015, and what gaps and

    challenges faced development partners to meet the MDGs.

    After China and India, Bangladesh has the third largest number of poor. The report bringsout the status and indicates challenges to meat UN-MDG targets by 2015. Bangladeshachieved remarkable progress in the areas of primary schooling, girls education,immunization, micro-credit, female economic participation, birth control, physicalmobility and safety nets. The most remarkable achievement was in the field of primaryeducation with the country well on its way to meet the MDG 2 of universal primaryeducation by 2015. The challenge here was to ensure adequate finances to keep up themomentum and quality education for all.

    Although all relevant indicators of MDGs moved towards their 2015 targets, theirperformances were uneven. To understand this variation, factors were analyzed for theslowing down of the child mortality rate, the apparent plateauing of total fertility rate, andthe rise in youth unemployment rate. It was also ascertained what factors work inaccelerating the pace of poverty reduction. It was important because the main underlyingfactor for the slow pace of MDG achievement was prevalence of poverty. Povertypermeates all sectors and holds back growth in every sense.

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    Bangladesh MDG Report emphasized that there is need for strong partnership at theglobal and at the national level. For countries like Bangladesh to meet the MDGcommitments made at the 2000 Millennium Summit, industrialized countries must honortheir commitments to finance development in developing countries. Trade barriers mustbe lifted and both the rich and the poor must be allowed to benefit from globalization so

    that we can all move towards a more equal world.

    Limitations of the MDG report

    Bangladesh government emphasised that this report was an advocacy tool for thedevelopment partners. But it did not specify the exact programs and measures to achievethose objectives. Besides, while every effort was made to use the most reliable and recentdata sources, the accent on consensus influenced the selection of data sources. Whereverpossible, the data ranges were preserved and the various scenarios were indicated withinthe given range. For these reasons, no attempt was made to provide in-depthsocioeconomic analysis at the national or sub-national level. In addition, the simulation

    exercises could not be applied to sectors such as health and environment, as they lackedthe necessary data base.

    Linkages to PRSP

    To address the limitations of MDG Report as indicated above, Bangladesh also preparedits first PRSP, which took into account all the targets for MDGs. The PRSP addressed theissues of pro-poor growth and human development, and if implemented fully, wouldaccelerate the achievement of the MDGs.

    The Bangladesh PRSP was prepared under the full government ownership and direction.PRSP process created significant opportunities for building capacity through jointlearning by doing. Twelve sectors were identified for the Bangladesh PRSP and an equalnumber of thematic groups were set up by the Government for coordinating thepreparation of the various thematic background papers. Although the compositions of theworking groups varied, they consisted of senior level officers from the line ministries andministries of Finance and Planning. They also included observers from the donoragencies and representatives of NGOs and other civil groups. The World Bank, AsianIMF, Asian Development Bank, UNDP, UNICEF, UNAIDS, UNFPA, the countrycoordinator of the United Nations supported these working groups by sharing theirtechnical resources and knowledge on international best practices.

    A mapping of the sectors indicates that most of the sectors address the MDGs in someform or the other. It may also be noted that at the Bangladesh Development Forum 2003and 2004, the Government strongly emphasized its commitments to the MDGs,especially by focusing on poverty eradication (Goal 1), education (Goal 2) and health(Goals 4, 5 and 6). Towards this end, the Government has reinvigorated its pro-poor biasunder the PRGF programme, allocating from FY04 an increased annual pro-poorspending of 1% of GDP. This link between the budgeting and the MDGs was clearlystated in the Finance Ministers budget speeches of FY 04 and FY05.

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    Table-2.2 Linkages between PRSP and MDGs in Bangladesh

    PRSP thematic sectors MDGs

    1. Agriculture and Environment, including forestry, land use, safewater supply, and water resources management2. Rural Development, including food security, disaster management,

    safety net programs, micro-credit and non-firm activities3. Domestic resources mobilization

    MDGs 1 and 7

    4. Macroeconomic stability and pro-poor growth5. Finance sector reforms including banking, trade and globalization6. Private sector development

    MDGs 1 and 8

    7. Education including primary and mass education, female education,

    vocational and technical education

    MDGs 2 and 3

    8. Women and children advancement and rights MDG 3

    9. Health including population planning, nutrition and sanitation MDGs 1,4 to 7

    10.ICT and technology policy MDG 8

    11.Reforms in governance including civil service reforms, judicialreforms, law and order

    12.Infrastructure development and reforms, including power, energy

    and communications

    Cross cutting atMDGs

    Linkages to UN Development Assistance Framework (UNDAF)

    In addition, the Bangladesh UNDAF 2006-2010 was prepared in 2004. An UNDAFprioritization retreat was held in August 2004. The participants included the NationalPoverty Focal Point, representatives from the various line ministries of the Governmentof Bangladesh, national research institutions and the UN Country Team. The exerciseresulted in the identification of five priority areas of cooperation between the GoB andthe UN agencies for the programme cycle 2006-2010. These areas were pro-pooreconomic growth; health, nutrition and sustainable population; social protection; genderequity and the advancement of women and children; and good governance. These fiveareas have clear linkages to the MDGs as well as to the PRSP themes above.

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    Table-2.3 Relation between UNDAF and MDGs

    GoB/ UN prioritized areas of cooperation under the

    BangladeshUN Development Assistance Framework(UNDAF) 2006-1010

    MDGs

    1. Democratic governance and human rights Millennium Declaration

    2. Health, nutrition and sustainable population MDGs 1, 4 to 7

    3. Education and pro-poor growth Millennium declarationand MDGs 1, 2 and 8

    4. Social protection and disaster risk reduction Millennium Declarationand MDG 7

    5. Gender equity and advancement of women MDG 3

    6. Protection and prevention against HIV/ AIDS MDG 7

    In other countries also there were close linkages between MDG reports and PRSP,

    as all the stakeholders were consulted by the respective governments before

    finalizing the reports. The UN World Summit 2005 called on countries to implement

    comprehensive development strategies to achieve internationally agreed

    development goals and objectives, including the MDGs by 2006 (United Nations

    2005). The UN World Summit and the Paris Declaration on Aid Effectiveness in

    2005 underscored the emerging consensus for a new aid environment characterized

    by national ownership, convergence around national planning focused on achieving

    the MDGs, capacity building, harmonization and alignment, outcome and

    accountability.

    Towards these aims, the UN Country Teams (UNCTs) have been working to assist

    developing countries in preparing strategies for MDG and PRSP. In many least

    Developed Countries and Less Income Countries, this meant making the poverty

    Reduction Strategies fully comply with the MDGs. UNCTs supported the MDGs

    through advocacy and campaigning, monitoring and reporting, analysis, capacity

    development, integration and implementation of the goals into national development

    plans or poverty reduction strategies, operational activities, as well as common

    country programming processes (UNMG 2006).

    2.5 MDG Reports and PRSP consulted in this Report

    The MDG reports, the Poverty Reduction Strategy Papers (PRSP) and the Joint (WorldBank and IMF) Staff Advisory Notes (JSANs) consulted to prepare this report are listedin Table-2.4. Among the 14 countries considered in this report, 8 countries viz.Afghanistan, Bangladesh, Cambodia, Lao PDR, Mongolia, Nepal, Pakistan and TimorLeste have both MDG report and PRSP and also Fund-Bank Joint Staff Advisory Notes(JSAN); 5 countries viz. China, Maldives, Myanmar, Thailand and Papua New Guinea

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    has only MDG report but no PRSP report; and Samoa has neither MDG report nor PRSP.Samoas analysis on poverty reduction is based on National Development Plan

    Table-2.4: PRSP and MDG Reports for Selected Countries,Consulted for preparation of the present report

    Country ReportsAfghanistan PRSP and MDG Reports

    May 15, 2006 Joint Staff Advisory Note (JSAN) of PRSP

    Mar 2006 Interim Poverty Reduction Strategy

    Mar 2006 Interim Poverty Reduction Strategy (Summary Report)

    March 2004 Afghanistan MDG Report (6,085.55 Kb)

    Sept 2005 Afghanistan Second MDG Report (8,130.75 Kb)

    Bangladesh PRSP and MDG Reports

    Dec 30, 2005 Joint Staff Advisory Note (JSAN) of PRSPOct 16, 2005 Poverty Reduction Strategy Paper (PRSP)

    Jun 5, 2003 Joint Staff Assessment (JSA) of I-PRSP

    Mar 31, 2003 Interim Poverty Reduction Strategy Paper (I-PRSP)

    February 2005 Bangladesh MDG Report (2,864.90 Kb)

    Cambodia PRSP and MDG Reports

    Jun 21, 2006 Joint Staff Advisory Note (JSAN) of PRSP

    Dec 22, 2005 Poverty Reduction Strategy Paper (PRSP)

    Aug 25, 2004 Joint Staff Assessment (JSA) of PRSP Progress Report

    Aug 19, 2004 PRSP Progress Report

    Jan 23, 2003 Joint Staff Assessment (JSA) of PRSP

    Dec 20, 2002 Poverty Reduction Strategy Paper (PRSP)

    Jan 22, 2002 Joint Staff Assessment (JSA) of PRSP Preparation Status Report

    Dec 24, 2001 PRSP Preparation Status Report

    Dec 26, 2000 Joint Staff Assessment (JSA) of I-PRSP

    Oct 20, 2000 Interim Poverty Reduction Strategy Paper (I-PRSP)

    Cambodia MDG Reports and PRSP

    2001 International Development (474.39 Kb)

    Nov 2003 Cambodian tailored MDG Report (2,063.42 Kb)

    Lao P.D.R. MDG Reports and PRSP

    Dec 2, 2004 Joint Staff Advisory Note (JSAN) for PRSP

    Jun 30, 2004 Poverty Reduction Strategy Paper (PRSP)

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    http://siteresources.worldbank.org/INTPRS1/Resources/Afghanistan_APR2-JSAN(May15-2006).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/AFNationalDevelopmentStrategy.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/ANDSSummaryRpt.pdfhttp://www.undg.org/archive_docs/3660-Afghanistan_MDG_Report.pdfhttp://www.undg.org/archive_docs/6666-Afghanistan_Second_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Bangladesh_JSAN(Dec30-2005).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Bangladesh_PRSP(Oct-16-2005).pdfhttp://povlibrary.worldbank.org/files/Bangladesh_IPRSP_JSA.pdfhttp://povlibrary.worldbank.org/files/14223_Bangladesh_IPRSP.pdfhttp://www.undg.org/archive_docs/5580-Bangladesh_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Cambodia_JSAN(June21-2006).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Cambodia_PRSP(Dec22-2005).pdfhttp://povlibrary.worldbank.org/files/cr04332.PDFhttp://povlibrary.worldbank.org/files/cr04333.PDFhttp://povlibrary.worldbank.org/files/cambodia_prspjsa.pdfhttp://povlibrary.worldbank.org/files/cambodia_PRSP2.pdfhttp://povlibrary.worldbank.org/files/Cambodia_JSA_of_PRSP_Status_Report.pdfhttp://povlibrary.worldbank.org/files/Cambodia_PRSP_Status_Report.pdfhttp://povlibrary.worldbank.org/files/cambodiajsa.pdfhttp://povlibrary.worldbank.org/files/Cambodia%20iprsp.pdfhttp://www.undg.org/archive_docs/162-Cambodia_MDG_Report_-_International_Development.pdfhttp://www.undg.org/archive_docs/3634-Cambodian_tailored_MDG_Report.pdfhttp://povlibrary.worldbank.org/files/cr04394.pdfhttp://www1.worldbank.org/prem/poverty/strategies/cpapers/cr04393.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Afghanistan_APR2-JSAN(May15-2006).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/AFNationalDevelopmentStrategy.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/ANDSSummaryRpt.pdfhttp://www.undg.org/archive_docs/3660-Afghanistan_MDG_Report.pdfhttp://www.undg.org/archive_docs/6666-Afghanistan_Second_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Bangladesh_JSAN(Dec30-2005).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Bangladesh_PRSP(Oct-16-2005).pdfhttp://povlibrary.worldbank.org/files/Bangladesh_IPRSP_JSA.pdfhttp://povlibrary.worldbank.org/files/14223_Bangladesh_IPRSP.pdfhttp://www.undg.org/archive_docs/5580-Bangladesh_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Cambodia_JSAN(June21-2006).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Cambodia_PRSP(Dec22-2005).pdfhttp://povlibrary.worldbank.org/files/cr04332.PDFhttp://povlibrary.worldbank.org/files/cr04333.PDFhttp://povlibrary.worldbank.org/files/cambodia_prspjsa.pdfhttp://povlibrary.worldbank.org/files/cambodia_PRSP2.pdfhttp://povlibrary.worldbank.org/files/Cambodia_JSA_of_PRSP_Status_Report.pdfhttp://povlibrary.worldbank.org/files/Cambodia_PRSP_Status_Report.pdfhttp://povlibrary.worldbank.org/files/cambodiajsa.pdfhttp://povlibrary.worldbank.org/files/Cambodia%20iprsp.pdfhttp://www.undg.org/archive_docs/162-Cambodia_MDG_Report_-_International_Development.pdfhttp://www.undg.org/archive_docs/3634-Cambodian_tailored_MDG_Report.pdfhttp://povlibrary.worldbank.org/files/cr04394.pdfhttp://www1.worldbank.org/prem/poverty/strategies/cpapers/cr04393.pdf
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    Aug 15, 2003 Joint Staff Assessment (JSA) of PRSP Preparation Status Report

    Jul 31, 2003 PRSP Preparation Status Report

    Jul 12, 2002 Joint Staff Assessment (JSA) of PRSP Preparation Status Report

    May 31, 2002 PRSP Preparation Status Report

    Apr 6, 2001 Joint Staff Assessment (JSA) of I-PRSP

    Mar 20, 2001 Interim Poverty Reduction Strategy Paper (I-PRSP), with

    January 2004 Lao PDR MDG Report

    Maldives MDG Reports (Des not have PRSP Report)

    Sept 2005 Maldives MDG Report (3,434.75 Kb)

    Mongolia MDG Reports and PRSP

    Nov, 2005 PRSP Progress Report

    Sep 19, 2005 Joint Staff Advisory Note (JSAN) of PRSP

    Oct 2004 EnglishMongolia MDG Reports

    Aug 14, 2003 Joint Staff Assessment (JSA) of PRSP

    Jul 3, 2003 Poverty Reduction Strategy Paper (PRSP)

    Sep 10, 2001 Joint Staff Assessment (JSA) of I-PRSP

    Jun 30, 2001 Interim Poverty Reduction Strategy Paper (I-PRSP)

    Myanmar MDG Report (Des not have PRSP Report)

    2005 Myanmar MDG Report (14,321.93 Kb)

    Nepal MDG Reports and PRSP

    Nov 30, 2006 Joint Staff Advisory Note on the PRSP Annual Progress Report

    Jun, 2006 PRSP Progress Report

    Jun, 2005 PRSP Progress Report

    Oct 24, 2003 Joint Staff Assessment (JSA) of PRSP

    May 30, 2003 Poverty Reduction Strategy Paper (PRSP)

    Sept 2005 Nepal MDG Progress Report 2005(8,711.11 Kb)

    Pakistan MDG Reports and PRSP

    Feb 12, 2004 Joint Staff Assessment (JSA) of PRSP

    Dec 31, 2003 Poverty Reduction Strategy Paper (PRSP)

    Jan 31, 2003 Joint Staff Assessment (JSA) of PRSP Preparation Status Report

    Jan 30, 2003 PRSP Preparation Status Report

    Nov 15, 2001 Joint Staff Assessment (JSA) of I-PRSP

    Nov 1, 2001 Interim Poverty Reduction Strategy Paper (I-PRSP)

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    http://povlibrary.worldbank.org/files/cr03309.pdfhttp://povlibrary.worldbank.org/files/cr03310.pdfhttp://povlibrary.worldbank.org/files/Lao_JSA_PRSP_PSR.pdfhttp://povlibrary.worldbank.org/files/Lao_PRSP_PSR.pdfhttp://povlibrary.worldbank.org/files/lao%20jsa.pdfhttp://povlibrary.worldbank.org/files/lao%20iprsp.pdfhttp://povlibrary.worldbank.org/files/lao%20iprsp.pdfhttp://www.unlao.org/MDGs/MDGR%20191004.htmhttp://www.undg.org/archive_docs/6679-Maldives_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Mongolia_prsp(Nov-2005).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Mongolia_jsan(Sept19-2005).pdfhttp://mirror.undp.org/mongolia/publications/NMDGR_Mongolia_eng.pdfhttp://mirror.undp.org/mongolia/publications/NMDGR_Mongolia_eng.pdfhttp://povlibrary.worldbank.org/files/Mongolia_PRSP_JSA.pdfhttp://povlibrary.worldbank.org/files/Mongolia_PRSP.pdfhttp://povlibrary.worldbank.org/files/Mongolia_JSA_of_PRSP.PDFhttp://povlibrary.worldbank.org/files/Mongolia_IPRSP.pdfhttp://www.undg.org/archive_docs/6550-Myanmar_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/383606-1165869436599/cr04443.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/NepalPRSPJun2006.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Nepal_PRSP(June2005).pdfhttp://povlibrary.worldbank.org/files/Nepal_PRSP_JSA.pdfhttp://povlibrary.worldbank.org/files/Nepal_PRSP.pdfhttp://www.undg.org/archive_docs/6563-Nepal_MDG_Progress_Report_2005.pdfhttp://www.undg.org/archive_docs/6563-Nepal_MDG_Progress_Report_2005.pdfhttp://povlibrary.worldbank.org/files/pakistan_jsa_prsp.pdfhttp://povlibrary.worldbank.org/files/15020_Pakistan_PRSP.pdfhttp://povlibrary.worldbank.org/files/Pakistan_JSA_of_Prog_Rep.PDFhttp://povlibrary.worldbank.org/files/Pakistan_PRSP_Prog_Rep.pdfhttp://povlibrary.worldbank.org/files/pakistan_iprsp_jsa.pdfhttp://povlibrary.worldbank.org/files/pakistan_iprsp_.pdfhttp://povlibrary.worldbank.org/files/cr03309.pdfhttp://povlibrary.worldbank.org/files/cr03310.pdfhttp://povlibrary.worldbank.org/files/Lao_JSA_PRSP_PSR.pdfhttp://povlibrary.worldbank.org/files/Lao_PRSP_PSR.pdfhttp://povlibrary.worldbank.org/files/lao%20jsa.pdfhttp://povlibrary.worldbank.org/files/lao%20iprsp.pdfhttp://www.unlao.org/MDGs/MDGR%20191004.htmhttp://www.undg.org/archive_docs/6679-Maldives_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Mongolia_prsp(Nov-2005).pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Mongolia_jsan(Sept19-2005).pdfhttp://mirror.undp.org/mongolia/publications/NMDGR_Mongolia_eng.pdfhttp://povlibrary.worldbank.org/files/Mongolia_PRSP_JSA.pdfhttp://povlibrary.worldbank.org/files/Mongolia_PRSP.pdfhttp://povlibrary.worldbank.org/files/Mongolia_JSA_of_PRSP.PDFhttp://povlibrary.worldbank.org/files/Mongolia_IPRSP.pdfhttp://www.undg.org/archive_docs/6550-Myanmar_MDG_Report.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/383606-1165869436599/cr04443.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/NepalPRSPJun2006.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Nepal_PRSP(June2005).pdfhttp://povlibrary.worldbank.org/files/Nepal_PRSP_JSA.pdfhttp://povlibrary.worldbank.org/files/Nepal_PRSP.pdfhttp://www.undg.org/archive_docs/6563-Nepal_MDG_Progress_Report_2005.pdfhttp://povlibrary.worldbank.org/files/pakistan_jsa_prsp.pdfhttp://povlibrary.worldbank.org/files/15020_Pakistan_PRSP.pdfhttp://povlibrary.worldbank.org/files/Pakistan_JSA_of_Prog_Rep.PDFhttp://povlibrary.worldbank.org/files/Pakistan_PRSP_Prog_Rep.pdfhttp://povlibrary.worldbank.org/files/pakistan_iprsp_jsa.pdfhttp://povlibrary.worldbank.org/files/pakistan_iprsp_.pdf
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    Feb 2005 Pakistan MDG Report(765.00 Kb)

    Papua NewGuinea

    MDG Reports (Des not have PRSP Report)

    Jan 2005 Papua New Guinea MDG Report(2,738.81 Kb)

    Samoa Does not have any MDG or PRSP Reports/Analysis in this report is based on National Development Plan

    Thailand MDG Reports (Des not have PRSP Report)

    June 2004 Thailand MDG Report English (1,362.22 Kb)Thai (1,685.32 Kb)Press Release (155.50 Kb)Press Release (long version) (157.50 Kb)UNDP Thailand website

    Timor-Leste MDG Reports and PRSP

    Apr 29, 2005 Joint Staff Advisory Note (JSAN) of PRSP

    July 26, 2005 Poverty Reduction Strategy Paper National Development Plan,Road Map for Implementation of National Development Plan,Overview of Sector Investment Programs Strategies and Prioritiesfor the Medium Term, July 26, 2005

    May 20, 2002 Poverty Reduction Strategy Paper (PRSP)

    Feb 2004 Timor-Leste MDG Report(4,427.94 Kb)

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    http://www.undg.org/archive_docs/5593-Pakistan_MDG_Report.dochttp://www.undg.org/archive_docs/5593-Pakistan_MDG_Report.dochttp://www.undg.org/archive_docs/5835-Papua_New_Guinea_MDG_Report.pdfhttp://www.undg.org/archive_docs/5835-Papua_New_Guinea_MDG_Report.pdfhttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_English.pdfhttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_Thai.ziphttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_Press_Release.dochttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_Press_Release__long_ver__.dochttp://www.undp.or.th/mdgr.htmhttp://siteresources.worldbank.org/INTPRS1/Resources/Timore-Leste_JSAN(April29-2005).pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Timor-Leste_PRSP(may2002).pdfhttp://www.undg.org/archive_docs/5382-Timor-Leste_MDG_Report_2004_-_Timor-Leste_MDG_Report.pdfhttp://www.undg.org/archive_docs/5382-Timor-Leste_MDG_Report_2004_-_Timor-Leste_MDG_Report.pdfhttp://www.undg.org/archive_docs/5593-Pakistan_MDG_Report.dochttp://www.undg.org/archive_docs/5835-Papua_New_Guinea_MDG_Report.pdfhttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_English.pdfhttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_Thai.ziphttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_Press_Release.dochttp://www.undg.org/archive_docs/4581-Thailand_MDG_Report_-_Press_Release__long_ver__.dochttp://www.undp.or.th/mdgr.htmhttp://siteresources.worldbank.org/INTPRS1/Resources/Timore-Leste_JSAN(April29-2005).pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://www.imf.org/external/pubs/ft/scr/2005/cr05247.pdfhttp://siteresources.worldbank.org/INTPRS1/Resources/Timor-Leste_PRSP(may2002).pdfhttp://www.undg.org/archive_docs/5382-Timor-Leste_MDG_Report_2004_-_Timor-Leste_MDG_Report.pdf
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    Chapter 3

    Economic and Social Profiles of Sample Countries

    Present chapter starts with brief discussion on economic and social profiles of the

    selected countries in this study, which cover 27 per cent of the world population and11 per cent of global area, but account for only 5.6 per cent of world GNP, and

    display a number of contrasts in terms of economic size, growth, per capita incomeand poverty.

    Asian economies had shown remarkable economic vigor and dynamism during

    1990s by outperforming by a wide margin other developing regions and industrialcountries as a group. The best performers during the first half of 2000s also existed

    in Asia.

    The Asian economies are typical examples of catch-up type economic growth.

    They achieved high growth with the help of transfer of capital and technology from

    advanced countries, while enjoying the benefits of the huge markets in theseadvanced economies.

    The process of rapid growth in output and intra-regional trade and investment in

    Asia is sometimes referred to as a virtuous circle of economic development.

    Foreign capital inflows were the result of high growth, favourable policyenvironment, sustained industrialization and trade expansion; and at the same time

    boosted economic growth and external trade.

    This section also discuses the development challenges of Asian economic regions. It

    is observed that despite significant economic progress and reduction of poverty in

    the recent years, sustainability of higher growth in future requires removal ofexisting infrastructure bottlenecks, improving governance in both public and private

    sectors, strengthening regulatory and legal institutional set-up, and improving

    management skill.

    The section also discusses progress of achievement of MDG targets until now. Most

    of the evaluations indicate that Asians economies have made reasonable progress in

    achieving MDG targets until now. UN MDG Report (2006) observes that as regards

    goal-1 Asia leads the decline in global poverty and as regards goal-2 to achieve

    universal primary education South Asia has made great strides.

    3.1 Economic and Social Indicators of Sample Countries

    The present report is based on available MDG Reports and Poverty Reduction StrategyPapers (PRSPs) of 12 selected MDG off-track countries (viz. Afghanistan, Bangladesh,Cambodia, Lao PDR, Maldives, Mongolia, Myanmar, Nepal, Pakistan, Papua NewGuinea, Samoa and Timor Leste) and two MDG on-track countries (viz. China and

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    Thailand). Tables 3.1 to 3.7 present general economic profiles of the countries, whileTables 3.8 and 3.12 indicate the current status of various MDGs related indicators.

    The present report is based on available MDG Reports and PovertyReduction Strategy Papers (PRSPs) of 12 selected MDG off-track countries

    and two MDG on-track countries in the ESCAP. Selected countries cover 27per cent of the world population and 11 per cent of global area, but accountfor only 5.6 per cent of world GNP, and display a number of contrasts in

    terms of poverty and social development indicators.

    Selected countries for this study cover 27 per cent of the world population and 11 percent of global area, but account for only 5.6 per cent of world GNP, and display a numberof contrasts. The sample includes the most populous country of the world viz. China withpopulation at 1296 million in 2004, which also happens to be the second largest economyin the world in terms of the purchasing power parity (PPP) adjusted GDP, and three smalleconomies viz. Maldives, Samoa and Timor Leste with population less than a million.

    While per capita nominal GNP in 2004 exceeded $2400 for Thailand and Maldives, thesample includes some of the poorest countries of the world viz. Bangladesh, Cambodia,Lao PDR and Nepal with per capita GNP of less than $500. Social developmentindicators also differ widely among these countries. While, in general, East Asianeconomies have higher degree of adult literacy and life expectation, South Asiancountries (except Sri Lanka, Maldives and Myanmar) lag far behind.

    Despite serious foreign exchange crisis in some of the East Asian countries in 1997-1999,Asian economies had shown remarkable economic vigor and dynamism during 1990s byoutperforming by a wide margin other developing regions and industrial countries as agroup. As regards industrial growth, performance by the Asian developing countriescontinued to outpace other developing regions and even the industrialized countries byabout 5 percentage points. The continued robust growth in Asia is attributable to anumber of factors such as widespread and sustained policy reforms in industry, trade andfinancial sectors and continued surge of foreign capital flows to these countries.

    The best performers during 1990s and first half of 2000s existed in Asia. Chinas growthhas been particularly spectacular, with real GDP growing at over 10 percent a year andreal per capita income at 9 percent during 1990-2005. Building on past investments inhuman, physical and institutional capital, continual high growth was the result of anambitious, comprehensive and sustained reforms program encompassing all sectors.There were continual liberalization of agriculture, redirection of savings to the provinces,removal of price controls, gradual liberalization of external trade and foreign investment,focus on both labor-intensive SMEs and high technology sectors, revamping of the taxand financial systems, and conversion of economic zones into attractive manufacturingplatforms for exports.

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    Table-3.1 Basic Economic Indicators of selected Asian countries in 2004

    Country Populati

    on

    Million

    Area

    000

    sq.km.

    GNP

    US$ billion

    GNP

    per capita

    (US $)

    PPP

    GNP

    US$ bln

    PPP GNP

    Per capita (US $)

    GDP GR

    In %

    2004 2004 2004 Rank 20004 Rank 2004 2004 Rank 2003-04

    1. Afghanistan .. 652 5.5 .. .. .. .. .. .. 7.5

    2. Bangladesh 139 144 61.3 52 440 174 274 1970 164 6.3

    3. Cambodia 14 181 4.8 128 350 183 32 2310 154 7.7

    4. China 1296 9598 1938 5 1500 129 7634 5890 108 10.1

    5. Lao, PDR 6 237 2.3 154 390 180 11 1880 171 6.3

    6. Maldives 0.321 0.3 0.773 .. 2410 .. .. .. .. 10.1

    7. Mongolia 3 1567 1.5 164 690 161 5 2040 162 10.7

    8. Myanmar 50 677 .. .. .. .. .. .. .. ..

    9. Nepal 27 147 6.6 115 250 193 39 1480 178 3.5

    10.Pakistan 152 796 90.7 44 600 161 330 2170 107 6.4

    11.Papua NewGuinea 6 463 3.3 142 560 164 13 2280 155 2.5

    12.Samoa* 0.184 2.8 0.338 160 1840 115 1.03 5610 .. 3.1

    13.Thailand 64 513 158.4 31 2490 104 505 7930 88 6.214.Timor Leste 0.887 14.9 0.506 .. 570 .. .. .. .. 1.8

    Note: (a) Two dots (..) stand for Data not available * Country source for Samoa.

    Source: (1) World Development Indicators 2006, World Bank.

    Table-3.2 Growth of output in selected Asian countries in 1990-2000 and 2000-2004

    Country GDP growth

    per annum

    1990-2000

    GDP growth

    per annum

    2000-2004

    Agriculture

    Growth pa

    2000-2004

    Industry

    Growth pa

    2000-2004

    Manufacture

    Growth pa

    2000-2004

    Services

    Growth pa

    2000-2004

    1. Afghanistan .. 16.8 .. .. .. ..

    2. Bangladesh 4.8 5.2 2.4 7.1 6.4 5.5

    3. Cambodia 7.1 6.3 2.8 14.2 14.6 3.9

    4. China 10.6 9.4 3.4 10.6 .. 9.8

    5. Lao, PDR 6.5 6.0 3.3 10.8 10.9 6.4

    6. Maldives .. .. .. .. .. ..

    7. Mongolia 3.5 5.2 -3.3 8.4 14.3 6.9

    8. Myanmar 7.0 .. 5.7* 10.5* 7.9* 7.2*

    9. Nepal 4.9 2.5 3.3 0.7 -1.4 2.3

    10.Pakistan 3.8 4.1 1.3 5.3 8.0 4.8

    11.Papua New Guinea 4.3 0.6 2.2 -3.6 -1.1 1.4

    12.Samoa** .. 5.0 .. .. .. ..

    13.Thailand 4.2 5.4 3.2 6.9 7.2 4.3

    14.Timor Leste .. .. .. .. .. ..

    Note: (a) Two dots (..) stand for Data not available (b) * during 1990-2000. (c) ** Country source for Samoa

    Source: (1) World Development Indicators 2006, World Bank.

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    Table 3.3 Structure of Demand in selected Asian economies in 2004Country Household final

    consumptionexpenditure

    as % of GDP

    General govt.consumptionexpenditureas % of GDP

    Gross DomesticInvestment% of GDP

    Exports of goodsand services% of GDP

    Imports of goodsand services% of GDP

    Gross DomesticSavings

    % of GDP

    1. Afghanistan .. .. .. .. .. ..

    2. Bangladesh 76 6 24 16 21 31

    3. Cambodia 80 5 26 65 76 194. China 49 10 39 34 31 42

    5. Lao, PDR .. .. .. 29 42 ..

    6. Maldives .. .. .. .. .. ..

    7. Mongolia 57 19 37 75 87 41

    8. Myanmar 89 .. 13 3 5 12

    9. Nepal 76 11 26 18 31 27

    10.Pakistan 73 8 17 16 15 23

    11.Papua NewGuinea 50 19 20 71 60 9

    12.Samoa .. .. .. .. .. ..

    13.Thailand 57 11 27 71 66 31

    14.Timor Leste .. .. .. .. .. ..

    Note: (a) Two dots (..) stand for Data not availableSource: (1) World Development Indicators 2006, World Bank.

    Table 3.4: Structure of output in selected Asian countries in 1990 and 2004

    Country GDP

    billion US$

    1990

    GDP

    billion US$

    2004

    Agriculture

    % of GDP

    2004

    Industry

    % of GDP

    2004

    Manufacture

    % of GDP

    2004

    Services

    % of GDP

    2004

    1. Afghanistan .. 5.8 .. .. .. ..

    2. Bangladesh 30.1 56.6 21 27 16 52

    3. Cambodia 1.1 4.9 33 29 22 40

    4. China 354.6 1931.7 13 46 .. 41

    5. Lao, PDR 0.9 2.5 47 28 20 26

    6. Maldives .. .. .. .. .. ..7. Mongolia .. 1.6 21 30 5 49

    8. Myanmar .. .. 57* 11* 8* 32

    9. Nepal 3.6 6.7 40 23 9 37

    10.Pakistan 40 96.1 22 25 18 53

    11.Papua New Guinea 3.2 3.9 29 42 9 29

    12.Samoa** .. 1 14 23 15 63

    13.Thailand 85.3 161.7 10 44 35 46

    14.Timor Leste .. .. .. .. .. ..

    Note: (a) Two dots (..) stand for Data not available (b) * during 1990 (c) ** Country source for Samoa.

    Source: (1) World Development Indicators 2006, World Bank.

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    Table 3.5 Structure of manufacturing in selected Asian economies in 2002

    Country ManufactureValue AddedUS$ billion

    Food-beveragesand tobacco

    % share

    Textiles andClothing% share

    Machinery andTransport

    Equipment% share

    Chemicals

    % share

    Othermanufacturing

    % share

    1. Afghanistan .. .. .. .. .. ..

    2. Bangladesh 7.3 24 38 7 17 18

    3. Cambodia 0.8 .. .. .. .. ..

    4. China .. 15 12 32 12 28

    5. Lao, PDR 0.3 .. .. .. .. ..

    6. Maldives .. .. .. .. .. ..

    7. Mongolia 0.07 33 37 1 1 27

    8. Myanmar .. .. .. .. .. ..

    9. Nepal 0.4 45 19 2 10 23

    10.Pakistan 10.4 23 2 5 11 59

    11.Papua New Guinea 0.2 21 0 3 4 73

    12.Samoa .. .. .. .. .. ..

    13.Thailand 42.7 23 14 4 25 34

    14.Timor Leste .. .. .. .. .. ..

    Note: (a) Two dots (..) stand for Data not available

    Source: (1) World Development Indicators 2006, World Bank

    Table 3.6 Structure of merchandise exports in selected Asian economies in 2004

    Country Merchandiseexports

    US$ billion

    Food% share

    Agrl. Rawmaterials% share

    Fruits% share

    Ores andminerals% share

    Manufactures% share

    1. Afghanistan 2.3 .. .. .. .. ..

    2. Bangladesh 12.0 19 9 8 2 62

    3. Cambodia 3.2 8 2 10 0 80

    4. China 561.2 4 4 8 7 77

    5. Lao, PDR 0.5 .. .. .. .. ..

    6. Maldives .. .. .. .. .. ..

    7. Mongolia 1.0 14 1 20 1 65

    8. Myanmar 2.2 13 1 5 0 81

    9. Nepal 1.9 17 5 16 4 59

    10.Pakistan 13.4 10 2 3 0 85

    11.Papua NewGuinea 2.5 21 3 22 49 6

    12.Samoa .. .. .. .. .. ..

    13.Thailand 97.4 16 5 2 1 76

    14.Timor Leste .. .. .. .. .. ..Note: (a) Two dots (..) stand for Data not available

    Source: (1) World Development Indicators 2006, World Bank.

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    Table 3.7 Structure of merchandise imports in selected Asian economies in 2004

    Country Merchandiseimports

    US$ billion

    Food% share

    Agrl. Rawmaterials% share

    Fruits% share

    Ores andminerals% share

    Manufactures% share

    1. Afghanistan 2.3 .. .. .. .. ..

    2. Bangladesh 12.0 19 9 8 2 62

    3. Cambodia 3.2 8 2 10 0 80

    4. China 561.2 4 4 8 7 77

    5. Lao, PDR 0.5 .. .. .. .. ..

    6. Maldives .. .. .. .. .. ..

    7. Mongolia 1.0 14 1 20 1 65

    8. Myanmar 2.2 13 1 5 0 81

    9. Nepal 1.9 17 5 16 4 59

    10.Pakistan 17.9 11 6 22 3 58

    11.Papua NewGuinea 1.7 16 1 13 0 69

    12.Samoa .. .. .. .. .. ..

    13.Thailand 95.4 5 3 12 3 76

    14.Timor Leste .. .. .. .. .. ..Note: (a) Two dots (..) stand for Data not availableSource: (1) World Development Indicators 2006, World Bank.

    Table-3.8 MDGs- Eradicating Poverty and Ensuring Gender Equality

    Country Eradicate extreme poverty and hunger Achieve universal primary

    education

    Promote gender equality

    Share ofpoorest

    quintile innational

    income (%)

    1999-2004

    Prevalence of childmalnutrition underweight as% of children under age-5

    Primary completion rate%

    Ratio of female to maleenrolment ratioin primary and

    secondary schools (%)

    1989-1994 2000-2004 1991 2004 1991 2004

    1. Afghanistan .. .. 39 25 .. 54 34

    2. Bangladesh 9 68 48 49 73 .. 106

    3. Cambodia 6.9 .. 45 .. 82 73 85

    4.China 4.7 17 8 103 99 87 98

    5.Lao, PDR 8.1 40 40 43 74 75 84

    6. Maldives .. 45 27 99 103 96 91

    7. Mongolia 5.6 12 13 .. 95 109 108

    8. Myanmar .. 31 32 .. 72 96 99

    9.Nepal 6 .. 48 51 71 59 90

    10.Pakistan 9.3 40 38 .. .. .. 73

    11.Papua NewGuinea 4.5 .. 25 50 55 80 87

    12.Samoa .. .. .. 96 48 .. 5013.Thailand 6.3 19 .. .. .. 95 98

    14.Timor Leste* 7.0 .. 45 .. .. .. 96

    Note Two dots (..) stand for Data not available Source: World Development Indicators 2006, World Bank.3. On the basis of the country MDG Report.

    Table-3.9 MDGs- Improving health

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    Country Reduce Child Mortality Improve Maternal Health

    Under-5 mortality ratesper 1000 live births

    Maternal mortalityratio per

    100000 live births

    Births attended byskilled health staffas % of total births

    1990 2004 2000 1989-1994 2000-2004

    15.Afghanistan 260 .. 1900 .. 1416.Bangladesh 149 77 380 10 13

    17.Cambodia 115 141 450 .. 32

    18.China 49 31 56 .. 96

    19.Lao, PDR 163 83 650 .. 19

    20.Maldives 48 18 78 .. 87

    21.Mongolia 108 52 110 .. 99

    22.Myanmar 130 106 360 .. 57

    23.Nepal 145 76 740 7 15

    24.Pakistan 130 101 500 19 23

    25.Papua NewGuinea 101 93 300 .. 41

    26.Samoa .. .. .. .. ..

    27.Thailand 37 21 44 .. 99

    28.Timor Leste* .. 144 420 .. ..

    Note Two dots (..) stand for Data not available Source: World Development Indicators 2006, World Bank.*On the basis of the country MDG Report.

    Table-3.10 MDGs- protecting common environment

    Country Combat HIV/ AIDS

    And other disease

    Ensuring Environmental

    sustainability

    Ensuring Environmental

    sustainability

    HIV prevalenceas % of people

    aged 15-49

    Incidence oftuberculosis per10000 people

    Carbon dioxide emissionsper capitametric tons

    Access to improvedwater source

    % of population

    2003 2004 1990 2002 1990 2002

    1. Afghanistan .. 333 0.2 .. .. 13

    2. Bangladesh .. 229 0.1 0.3 71 75

    3. Cambodia 2.6 510 0 0 .. 34

    4.China 0.1 101 2.1 2.7 70 77

    5.Lao, PDR 0.1 156 0.1 0.2 .. 43

    6. Maldives 0.1 .. .. 0.3 80 90

    7. Mongolia

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    Table-3.11 MDGs- protecting common environment

    Country Ensure environmental

    sustainability

    Develop global partnership

    for development

    Female

    population

    Life expectancy at birth-

    years

    Access to improvedSanitation facilities

    % of population

    Youthunemployment

    % of ages

    15-24

    Fixed line andmobile phonesubscribers

    per 1000population

    % oftotal

    population

    Males Females

    1990 2002 1990 2002 2004 2004 2004

    1. Afghanistan .. 8 .. 23 .. .. ..

    2. Bangladesh 23 48 .. 37 48.9 63 64

    3. Cambodia .. 16 .. 40 51.7 53 60

    4.China 23 44 .. 499 48.6 70 73

    5.Lao, PDR .. 24 .. 48 50 54 57

    6. Maldives .. .. .. .. .. 67 69

    7. Mongolia 54 73 26 446 49.9 62 68

    8. Myanmar 21 73 .. 10 50.3 58 64

    9.Nepal 12 27 .. 22 50.4 62 63

    10.Pakistan 38 54 13 63 8.5 64 66

    11.Papua NewGuinea 45 45 .. 14 48.4 55 5712.Samoa 70 72

    13.Thailand 80 99 5 537 50.8 67 74

    14.Timor Leste 56 58

    Note Two dots (..) stand for Data not available Source: World Development Indicators 2006, World Bank.

    Table-3.12 MDGs- Women in Development

    Country Pregnant

    women

    receiving

    prenatal care

    Teenage

    mothers

    Women in

    non-

    agricultural

    sector

    Unpaid family workers Women in parliaments

    % % of women

    aged 15-19years

    % of total Male

    % of maleemployment

    Female

    % of femaleemployment

    % of total seats

    2000-2004 1995-2004 2003 2000-04 2000-04 1990 2006

    1. Afghanistan 16 .. .. .. .. 4 ..

    2. Bangladesh 49 33 24.2 10.1 73.2 10 15

    3. Cambodia 38 8 52.6 31.6 53.3 .. 10

    4.China 89 .. 39.5 .. .. 21 20

    5.Lao, PDR 27 .. .. .. .. 6 23

    6. Maldives .. .. .. .. .. .. ..

    7. Mongolia 94 .. 49.4 18.4 31.7 25 7

    8. Myanmar 76 .. .. .. .. .. ,,

    9.Nepal 28 21 .. .. .. 6 0

    10.Pakistan 43 .. 8.7 16.4 46.9 10 21

    11.Papua NewGuinea 58 .. 35.4 .. .. 0 112.Samoa .. .. .. .. .. .. 8

    13.Thailand 86 3 51.8 21.9 50.3 18 27

    14.Timor Leste* .. .. .. .. .. .. 28

    Note Two dots (..) stand for Data not available Source: World Development Indicators 2006, World Bank.* On the basis of the country MDG Report.

    3.2 General Development Strategies of Asian economies

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    Almost all the Asian economies are passing through a phase of economic reforms. Theyhave taken credible reforms in industry, trade, commerce, financial and fiscal sectors toinduce dynamism in the overall growth process. The mechanism that contributed the highgrowth of the Asian economies in the recent years can be summarized as export-oriented

    and foreign-investment-led growth supported by low production costs due to availabilityof cheap labour and raw materials. As judged by ratios to GDP, investments and exportstogether made a much higher contribution to growth in Asia than in the other regions.Asian economies achieved high economic growth by introducing capital and technologyfrom advanced countries, while enjoying the benefits of the huge markets that theseadvanced countries offer. In other words, the Asian economies are typical examples ofcatch-up type economic growth.

    The Asian economies are typical examples of catch-up type economicgrowth. They achieved high growth with the help of transfer of capital and

    technology from advanced countries, while enjoying the benefits of the huge

    markets in these advanced economies.

    There was also a rapid growth in intra-Asian trade accompanied by rising flows offoreign investment. The traditional focus of foreign investment by Asian companies infinancial sector and re